19.08.2026 17:00
Bitcoin (BTC) has lost more than half of its value since its mining peak. BlackRock, the world's largest asset manager, attributed the decline to excessive leverage and argued that the long-term investment rationale remains unchanged.
In a research report published in August, BlackRock attributed the pullback to three factors. Excessive leverage, weakening institutional fund flows, and companies holding crypto in their treasuries slowing their purchases constituted these factors. According to the firm, this picture does not indicate a structural deterioration of Bitcoin's monetary and diversification properties. What emerged is a move driven by positioning and liquidity.
The numbers support this interpretation. Bitcoin rose from its level of $15,765 at the end of 2022 to a record of $124,606 seen in October 2025. Near the peak, open interest in futures exceeded $90 billion. Approximately 80% of this amount consisted of perpetual contracts outside regulated derivatives exchanges. Some platforms offered leverage between 50 and 125 times, leading to automatic liquidations on small price movements.
The first major unwinding occurred on October 10, 2025, following the US decision on tariffs against China. As Bitcoin fell 6%, open interest decreased by $20 billion in a single day. BlackRock described this as the sharpest daily contraction in the dataset it examined. New waves of liquidations came in February and June, pushing the price below $60,000.
AI FUNDS ATTRACTED $46 BILLION
The picture on the fund side also increased the pressure. Spot Bitcoin exchange-traded products saw approximately $60 billion in inflows from their US launch in January 2024 through October 2025. The products subsequently experienced total outflows of $5 billion through July 2026. During the same period, artificial intelligence-themed funds gathered inflows exceeding $46 billion. BlackRock assesses that this rotation competes for capital and pressures Bitcoin allocations.
In recent days, the picture has partially changed. Funds saw inflows of $297.5 million on August 17 and $189.3 million on August 18. This total demand of $486.8 million came after outflows of $385.2 million the previous week.
MARA SOLD 15,000 BITCOIN IN MARCH
The report also listed sales by miners, large holders, and companies holding crypto in their treasuries as a pressure factor. Mining company MARA sold 15,133 Bitcoin in March for approximately $1.1 billion. Strategy, meanwhile, launched a program that allows using sales proceeds to cover reserves, dividends, and interest payments. The company sold 1,690 Bitcoin between August 3-9 for $108.6 million and used the proceeds for preferred share buybacks.
A 1% ALLOCATION MADE A DIFFERENCE IN THE PORTFOLIO TEST
In its ten-year backtest, BlackRock found that adding small allocations of Bitcoin to a traditional 60/40 portfolio improved risk-adjusted returns. A 1% allocation increased the Sharpe ratio from 0.81 to 0.90, while a 2% allocation yielded a result of 0.96. Maximum drawdown rates remained close. The decline, which was 20.3% in the traditional portfolio, was measured at 20.9% in the portfolio with 2% Bitcoin added.
The firm emphasized that these results are hypothetical and do not reflect a real client portfolio. Nevertheless, BlackRock highlighted Bitcoin's limited supply, its low ten-year correlation of 0.18 with the S&P 500, and its potential to protect against the erosion of purchasing power. The company also reminded that the asset remains volatile and speculative.
At the time of publication, Bitcoin was trading at $64,457. In the coming period, fund flows, futures positions, and corporate announcements will be decisive. Sustained inflows and declining leverage will strengthen the view that the decline is cyclical. New liquidations or ongoing treasury sales, on the other hand, will weaken this assessment.